Globalization in Asia

Globalization and Regional Security: Asia Perspectives

February 23-25, 1999

Nearly two years since Asia’s economic crisis began, the region has begun to express doubts about the impact of globalization on regional societies. Although the term defies simple definition, participants agreed that globalization has several core characteristics:

Unprecedented economic interdependence, driven by cross-border capital movements, rapid technology transfer, and "real time" communication and information flows.

Rise of new actors that challenge state authority, particularly non-governmental organizations and civic groups, global firms and production networks, and even financial markets.

Growing pressure on states to conform to new international standards of governance, particularly in the areas of transparency and accountability.

The emergence of an increasingly Western-dominated international culture, a trend which in many countries has sparked concern about the erosion of national identity and traditional values.

The rise of severe transnational problems that require multilateral cooperation to resolve.

Globalization and Regional Security – The impact of globalization on Asia’s security is complex. In some ways the impact has been positive: economic integration has reduced the potential for conflict, particularly in Southeast Asia. Nevertheless, globalization may give rise to new security concerns, and aggravate existing tensions.

New transnational threats – Globalization has contributed to the rise of energy and environmental issues, food and water access, migration, and organized crime and terrorism as major security concerns. To be effective, responses to these problems must be multilateral in nature.

Weakening regional institutions – The financial crisis has weakened Asia’s two major regional organizations, APEC and ASEAN. APEC was helpless during the crisis, and ASEAN appears increasingly divided.

Shifts in the balance of power – Because globalization can fuel rapid economic growth, shifts in the balance of power can occur more quickly than in the past. Rapid Chinese growth and Japanese economic stagnation may change the strategic equation in Asia in a relatively brief period of time.

Expanding roles for the military – The combination of new threats and lingering concerns will place unprecedented demands on regional military organizations. Militaries will have to take on new roles, even as resources decline and recruitment falls.

Globalization and Sovereignty – Although globalization is often viewed as a challenge to national sovereignty, states in Asia have chosen to embrace the global economy. During Asia’s boom years, globalization was viewed as a tool for strengthening national power, rather than as a potential threat. This view was reinforced by the belief in Asia that governments could participate in the global economy without altering domestic political structures and practices. Across the region growing wealth often coexisted with authoritarianism.

Events in Indonesia, however, suggest that globalization can force political, as well as economic, change. Globalization can exacerbate divisions within society, with some groups profiting more from globalization than others – Indonesia’s ethnic Chinese, for example. In the face of globalization, ethnic divisions and separatist movements could worsen, and social cohesion could suffer as well.

Authoritarian regimes may have more to fear from globalization than democratic states. Governments that embrace norms such as transparency, accountability, and the rule of law – concepts that form the backbone of democratic societies – appear to have suffered less from the financial crisis than their authoritarian counterparts.

For now, few Asian governments appear likely to reject globalization entirely. Nevertheless, the possibility of an Asian backlash – primarily against the United States – remains real. A new "grand bargain" between the West and Asia is essential. The West must recognize that Asian concern over eroding values and social cohesion is legitimate; Asia must cease demonizing the West for its role in spurring globalization, because no nation is immune to the challenges and opportunities it presents.

Conference Summary Report, "Globalization in Asia: Getting the Breeze Without the Bugs"